Global Strategy: Principles, Policies, And Practices Essay

Question:

Discuss about the Global Strategy for Principles, Policies, and Practices.

Answer:

Introduction:

Bunning is one of the leading retailers of home furnishing as well as living products in Australia and New Zealand. The company is also major supplier to project builder (New Zealand Securities Commission, 2004). The organization is committed to good commitment governance, which could promote the long-term interests of shareholders and contributes to the board and management accountability. The company helps to build public trust in the firm. It is also observed that some responsible aspects are committed to promote the governance culture through a particular framework that is based on the ASX Corporate Governance.

The business strategies of the firm determine the governance framework that is embedded in Trust’s compliance plan to check the ethical behavior as well as transparency (Tricker, 2015). In order to expand the business, the firm has modified its corporate principles of governing the business. Bunnings has built an effective relationship with some responsible entity as well as West farmers. The responsible entity of the firm takes the stand of managing the affairs of the listed entity, which is known as BWP Trust. Therefore, in a response, the BWP trust pays a management fee to the responsible entity. Furthermore, it is also learnt that The Board of the responsible for dealing with the management arrangements between the entities and Trust Board (Fox, Walker & Pekmezovic, 2012). The firm effectively follows this particular principle while controlling the operation. In addition to all these, the responsible entity should have to form a compliance committee considering the half of the directors of the company. The respective persons are selected based on particular aspects. Thus, the firm performs the operations and gains competitive advantages from the market.

Code of Conduct

As discussed earlier, in order to conduct the operation, Bunnings’ has made some responsible entities. This helps the organization to have full control over its business. The responsible entity is supposed to follow and implement the code of conduct that includes minimum sustainable standards of behavior to assure the operation conducted by each employee is integrated. In addition, the implementation of these responsibilities has honesty, which could influence the productivity of the firm (Acharya, Gottschalg, Hahn & Kehoe, 2013). Moreover, it is the responsibilities of each employee to comply with the ethics and code of conduct developed by the firm itself. Bunnings tends to maintain the maximum standards of corporate behavior as well as the accountability. The responsible entity is committed to act responsibly as well as ethically.

The entity takes the responsibly to run the business in a manner that is largely sustainable. The personnel involved in the management or the managing directors deal with the extent to which, the material exposure of the Trust to economic, environmental and social responsibility risks are effectively dealt with. Hence, the Trust is supposed to follow and implement the sustainability principles. In addition to this, the key of Bunnings is the integrity of the employees. The employees working at Bunnings effectively follow and implement the code of conduct and organizational ethics. This code of conduct is developed for the wellbeing of the employees as well as the company considering the corporate principles that guide the business globally (Tricker, 2015).

Reference list:

Acharya, V. V., Gottschalg, O. F., Hahn, M., & Kehoe, C. (2013). Corporate governance and value creation: Evidence from private equity. Review of Financial Studies, 26(2), 368-402.

Fox, M. A., Walker, G. R., & Pekmezovic, A. (2012). Corporate governance research on New Zealand listed companies. Ariz. J. Int'l & Comp. L., 29, 1.

New Zealand Securities Commission. (2004). Corporate governance in New Zealand principles and guidelines: A handbook for directors, executives, and advisers. Wellington: New Zealand Securities Commission.

Tricker, B. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press, USA.

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